Best and Worst Places for Millennial Home-Buying

Members of the millennial generation, especially first-time buyers, are already struggling to purchase a home due to student loan debt, trouble saving for a down payment and tight inventory—factors cited in the National Association of REALTORS® (NAR) 2017 Profile of Home Buyers and Sellers. According to GOBankingRates, slow wage growth and low unemployment rates across the country are also impacting the homeownership rate.

There are, however, specific locations that may be easier to purchase in because of low median list prices and low monthly mortgage payments. GOBankingRates rated the most and least expensive states across the U.S. to help millennial buyers find affordable housing. The report uses a median income of $60,932 to represent ages 25-34, and the following rankings are based on a 20 percent down payment and a 30-year, fixed rate mortgage.

Top 5 Most Affordable States

West VirginiaMedian Lis price: $154,900
Estimated time to save for a down payment: 2.5 years
Monthly mortgage payment: $693

OhioMedian list price: $150,000
Estimated time to save for a down payment: 2.5 years
Monthly mortgage payment: $704

ArkansasMedian list price: $150,000
Estimated time to save for a down payment: 2.5 years
Monthly mortgage payment: $757

IndianaMedian list price: $167,000
Estimated time to save for a down payment: 2.7 years
Monthly mortgage payment: $757

IowaMedian list price: $169,000
Estimated time to save for a down payment: 2.8 years
Monthly mortgage payment: $766

Top 5 Most Expensive States

HawaiiMedian list price: $599,000
Estimated time to save for a down payment: 9.8 years
Monthly mortgage payment: $2,584

CaliforniaMedian list price: $499,950
Estimated time to save for a down payment: 8.2 years
Monthly mortgage payment: $2,168

MassachusettsMedian list price: $419,900
Estimated time to save for a down payment: 6.9 years
Monthly mortgage payment: $1,833

ColoradoMedian list price: $408,068
Estimated time to save for a down payment: 6.7 years
Monthly mortgage payment: $1,780

OregonMedian list price: $352,000
Estimated time to save for a down payment: 5.8 years
Monthly mortgage payment: $1,551